FAA Fund

The only capital development fund 100% dedicated to the automotive sector. 

Presentation

Created in 2009, the FAA fund (Avenir Automobile Fund) aims to:

• Promote the Frech automotive industry.

• Enable the development of automotive suppliers by strengthening their equity and supporting them in their international development.

• Encourage the consolidation of domestic companies to give them a European and international dimension.

• Support the innovative projects of companies in the automotive sector.

The FAA acts through two funds that invest in equity of quasi-equity in automotive players:

• The Tier 1 FAA benefits from € 600 million divided equally between the three subscribers (Bpifrance, Renault, PSA) to support the projects of tier 1 suppliers by investing amounts between € 5 million and € 60 million.

• The Tier 2 FAA is endowed with €50 M encompassing 5 benchmark automotive suppliers (Bosch, Faurecia, Valeo, Hutchinson and Plastic Omnium), the Tier 1 FAA and Bpifrance, specifically dedicated to tier 2 automotive suppliers by investing amounts between €1 and 5 M.

FAA teams have developed an in-depth knowledge of issues in the sector. They place their expertise at the service of portfolio companies and enable them to benefit from support with the aim of creating value.

Examples:

Novares

• Plastic injection

• Joined the FAA in 2009 while the group posted turnover of approx €500M

• Supporting Equistone’s investment and acquisition of Key Plastics (US) in 2016

• New external growth scheme in the US completed early 2019

• The group has doubled its turnover since we joined

SNOP

• Plastic injection

• Joined the FAA in 2009 while the group posted turnover of approx €500M

• Supporting Equistone’s investment and acquisition of Key Plastics (US) in 2016

• New external growth scheme in the US completed early 2019

• The group has doubled its turnover since we joined

Delfingen

• Wiring

• Joined in 2009 and left in 2017

• Increase of the stock market price from less than €10 upon joining against more than €30 today

 

  • €625 Million

    under management

  • 15

    holdings

  • €5 Billion

    cumulative turnover

Our support

Increasing your presence in growth markets through green field set-ups and external growth. 

Supporting the investment in R&D of mature companies. 

Developing high potential technology companies (those with proof of concept, posting turnover and in the industrial or comercial roll-out phase)

Helping leaders to emerge (those who achieve a critical size, achieve synergies, increase in profitability and strengthen their presence abroad)

Ensuring the sustainability of the company through the liquidity of a historical shareholder and buy-ins by managers

How to benefit from this product or activity?

The main investment rules of the FAA are:

• Investment is made in French companies in the automotive sector, in equity or quasi-equity, on coupons between € 1M and € 60M

• The investment is a minority one

• The investment is made in profitable projects with a potential for value creation

• Investment is accompanied by an active role in governance;

• The investment is long term and triggers support by FAA teams;

• The investment decision integrates ESG criteria.